BRIDGEPORT, CT. – People's
United Financial, Inc. (NASDAQ: PBCT) today announced net income of $16.0 million, or $0.04 per share, for the
second quarter of 2010, compared to $13.6 million, or $0.04 per share, for the first quarter of 2010, and $25.3
million, or $0.08 per share, for the second quarter of 2009. Included in both this quarter's and first
quarter's results are pre-tax merger-related, system conversion and one-time expenses totaling $23.2 million and
$23.4 million, respectively. Excluding the effect of these items, net income would have been $31.8 million,
or $0.09 per share, for the second quarter of 2010 and $29.2 million, or $0.08 per share, for the first quarter
of 2010.

As previously reported, People's United Financial completed its acquisitions
of Financial Federal Corporation on February 19, 2010 and Butler Bank on April 16, 2010. Accordingly,
Financial Federal's and Butler Bank's results of operations are included as of the respective acquisition dates,
and prior period results have not been restated to include Financial Federal and Butler Bank.

The Board of Directors of People's United Financial declared a $0.1550 per
share quarterly dividend, payable August 15, 2010 to shareholders of record on August 1, 2010. Based on the
closing stock price on July 14, 2010, the dividend yield on People's United Financial common stock is 4.4
percent.

People's United Financial also announced today definitive agreements to
acquire Smithtown Bancorp, Inc. based in Hauppauge, New York, and LSB Corporation based in North Andover,
Massachusetts. Further information regarding these acquisitions is included in a separate release.

"The announcement today of the acquisition of two financial institutions
within markets contiguous to our existing footprint, while at the same time reporting another solid quarter of
operating results, is a testament to the strong financial position of People's United Financial," stated Jack
Barnes, interim President and Chief Executive Officer. "The strength of our capital and liquidity, asset quality
and earnings, as well as the fact that our balance sheet remains funded almost entirely by deposits and
stockholders' equity, continue to set us apart from most in the industry."

Barnes added, "While we continue to evaluate potential acquisition
opportunities, we are actively pursuing other capital deployment activities. In this regard, we plan to
open two new branches in downtown Boston – one in the Prudential Center and one in the Financial District –
before year end, thereby providing an important extension to our growing footprint in the greater Boston
area. Further, during the second quarter we repurchased 3.7 million shares of our common stock for
approximately $52 million."

Barnes concluded, "In connection with the final phase of our core systems
conversion, which is scheduled to be completed this weekend, we have begun the process of rebranding our branches
in Vermont, New Hampshire, Massachusetts and Maine to People’s United Bank. We are pleased to have reached
this milestone, which will provide all of our customers with the added convenience of being able to bank
seamlessly at any of our nearly 300 branches along with the instant recognition of the People’s United Bank name
on branches from Bangor, Maine to Scarsdale, New York."

"On an operating basis, excluding merger-related, system conversion and
one-time expenses, earnings were $31.8 million, or 9 cents per share this quarter," said Paul D. Burner, Senior
Executive Vice President and Chief Financial Officer. "Significant drivers of the company's performance
this quarter were an improvement in the net interest margin and modest loan growth across our strategic lending
businesses, partially offset by higher net loan charge-offs. The net interest margin improved 21 basis
points to 3.68 percent, primarily reflecting the benefit of a full quarter of Financial Federal. A single
non-performing commercial loan accounted for $6.0 million, or 72 percent, of the quarterly increase in net loan
charge-offs."

Commenting on asset quality, Burner continued, "Loans acquired in connection
with the Financial Federal and Butler Bank acquisitions have been recorded at fair value, including a reduction
for estimated credit losses, and without carryover of the respective portfolio's historical allowance for loan
losses. As such, selected asset quality metrics have been highlighted to distinguish between the
'originated' portfolio and the 'acquired' portfolios. For the originated loan portfolio, representing all
loans other than those acquired in the Financial Federal and Butler Bank transactions, non-performing loans
totaled $219.7 million at June 30, 2010, and the ratio of non-performing loans to originated loans was 1.56
percent, compared to $192.3 million and 1.36 percent, respectively, at March 31, 2010. Non-performing loans
in the acquired loan portfolios, which represent those loans acquired in the Financial Federal and Butler Bank
transactions that meet our definition of non-performing but for which the risk of loss has already been
considered by virtue of our estimate of acquisition-date fair value and/or the existence of an FDIC loss-share
agreement, totaled $60.1 million at June 30, 2010."

Non-performing assets totaled $284.5 million at June 30, 2010, a $37.0
million increase from March 31, 2010, of which $13.1 million is attributable to REO acquired in connection with
the Butler Bank acquisition. Non-performing assets equaled 2.01 percent of originated loans, REO and
repossessed assets at June 30, 2010 compared to 1.74 percent at March 31, 2010. At June 30, 2010, the
allowance for loan losses as a percentage of originated loans was 1.23 percent and as a percentage of
non-performing originated loans was 79 percent, compared to 1.22 percent and 90 percent, respectively, at March
31, 2010.

Second quarter net loan charge-offs totaled $17.8 million compared to $9.5
million in the first quarter of 2010. Net loan charge-offs as a percent of average loans on an annualized
basis were 0.46 percent in the second quarter of 2010 compared to 0.26 percent in this year's first
quarter. The level of the allowance for loan losses is unchanged from March 31, 2010.

In the second quarter of 2010, return on average tangible assets was 0.32
percent and return on average tangible stockholders' equity was 1.7 percent, compared to 0.28 percent and 1.5
percent, respectively, for the first quarter of 2010. At June 30, 2010, People's United Financial's
tangible equity ratio stood at 18.0 percent.

Conference Call

On July 16, 2010, at 11 a.m., Eastern Time, People's United Financial will
host a conference call to discuss this earnings announcement and our acquisition announcements. The call
may be heard through www.peoples.com by selecting "Investor Relations" in
the "About Us" section on the home page, and then selecting "Conference Calls" in the "News and Events" section.
Additional materials relating to the call may also be accessed at People's United Bank's web site.
The call will be archived on the web site and available for approximately 90 days.

Selected Financial Terms

In addition to evaluating People’s United Financial's results of operations
in accordance with U.S. generally accepted accounting principles ("GAAP"), management routinely supplements this
evaluation with an analysis of certain non-GAAP financial measures, such as the efficiency and tangible equity
ratios, and tangible book value per share. Management believes these non-GAAP financial measures provide
information useful to investors in understanding People's United Financial's underlying operating performance and
trends, and facilitates comparisons with the performance of other banks and thrifts. Further, the
efficiency ratio is used by management in its assessment of financial performance specifically as it relates to
non-interest expense control, while the tangible equity ratio and tangible book value per share are used to
analyze the relative strength of People's United Financial's capital position.

The efficiency ratio, which represents an approximate measure of the cost
required by People's United Financial to generate a dollar of revenue, is the ratio of (i) total non-interest
expense (excluding goodwill impairment charges, amortization of other acquisition-related intangibles and fair
value adjustments, losses on real estate assets and non-recurring expenses) (the numerator) to (ii) net interest
income on a fully taxable equivalent basis (excluding fair value adjustments) plus total non-interest income
(including the fully taxable equivalent adjustment on bank-owned life insurance income, and excluding gains and
losses on sales of assets, other than residential mortgage loans, and non-recurring income) (the denominator).
People's United Financial generally considers an item of income or expense to be non-recurring if it is not
similar to an item of income or expense of a type incurred within the last two years and is not similar to an
item of income or expense of a type reasonably expected to be incurred within the following two years.

The tangible equity ratio is the ratio of (i) tangible stockholders' equity
(total stockholders' equity less goodwill and other acquisition-related intangibles) (the numerator) to (ii)
tangible assets (total assets less goodwill and other acquisition-related intangibles) (the denominator).
Tangible book value per share is calculated by dividing tangible stockholders' equity by common shares
outstanding (total common shares issued, less common shares classified as treasury shares and unallocated ESOP
common shares).

Summary

Net income totaled $16.0 million, or $0.04 per share.

Operating earnings were $31.8 million, or $0.09 per share.

Net interest income totaled $173.8 million.

Net interest margin increased 21 basis points from 1Q10 to 3.68%.

Average short-term investments and securities purchased under agreements
to resell
totaled $2.5 billion, or 13% of average earning assets, and yielded 0.26% in 2Q10.

Average deposits increased $502 million (including $183 million of
average deposits acquired in the Butler Bank acquisition) and the interest cost on deposits declined 4
basis points from 1Q10.

Provision for loan losses totaled $17.8 million.

Net loan charge-offs totaled $17.8 million in 2Q10.

Non-interest income totaled $76.8 million in 2Q10 compared to $70.6 million
in 1Q10.

2Q10 includes a full quarter of Financial Federal non-interest
income.

Non-interest expense totaled $209.8 million in 2Q10 compared to $200.3
million in 1Q10.

2Q10 includes $15.3 million of one-time expenses related to the former
CEO separation agreement.

2Q10 and 1Q10 include $7.9 million and $23.4 million, respectively, of
merger-related and system conversion costs.

2Q10 includes a full quarter of Financial Federal non-interest
expense.

Effective income tax rate was 30.4% in 2Q10 and 31.8% in the first six
months of 2010.

Excluding a $1.2 million non-taxable BOLI death benefit, the income tax
rate was 32.2% in 2Q10 and 32.7% in the first six months of 2010.

Commercial Banking

Average commercial banking loans, excluding shared national credits and
acquired loans, increased $96 million from 1Q10 to $8.9 billion.

Average residential mortgage loans totaled $2.5 billion, unchanged from
1Q10, reflecting the addition of approximately $105 million of average residential mortgage loans acquired in
the Butler Bank acquisition.

Assets managed and administered, which are not reported as assets of
People's United Financial, totaled $16.4 billion at June 30, 2010 compared to $16.8 billion at March 31, 2010,
primarily reflecting the decline in equity markets in 2Q10.

People's United Financial, a diversified financial services company with $22
billion in assets, provides commercial banking, retail and small business banking, and wealth management services
through a network of nearly 300 branches in Connecticut, Vermont, New Hampshire, Maine, Massachusetts and New
York. Through its subsidiaries, People's United Financial provides equipment financing, asset management,
brokerage and financial advisory services, and insurance services.

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Certain statements contained
in this release are forward-looking in nature. These include all statements about People's United Financial's
plans, objectives, expectations and other statements that are not historical facts, and usually use words such as
"expect," "anticipate," "believe" and similar expressions. Such statements represent management's current
beliefs, based upon information available at the time the statements are made, with regard to the matters
addressed. All forward-looking statements are subject to risks and uncertainties that could cause People's United
Financial's actual results or financial condition to differ materially from those expressed in or implied by such
statements. Factors of particular importance to People’s United Financial include, but are not limited to: (1)
changes in general, national or regional economic conditions; (2) changes in interest rates; (3) changes in loan
default and charge-off rates; (4) changes in deposit levels; (5) changes in levels of income and expense in
non-interest income and expense related activities; (6) residential mortgage and secondary market activity; (7)
changes in accounting and regulatory guidance applicable to banks; (8) price levels and conditions in the public
securities markets generally; (9) competition and its effect on pricing, spending, third-party relationships and
revenues; (10) the successful integration of acquired companies; (11) success in addressing management succession
issues in a timely and effective manner; and (12) possible changes in regulation resulting from or relating to
the pending financial reform legislation. People's United Financial does not undertake any obligation to update
or revise any forward-looking statements, whether as a result of new information, future events or
otherwise.